ABSTRACT: We analyze the optimal location choice of a monopolistic firm that operates two platforms on
a two-sided market. We show that the optimal platform locations are equivalent to the onesided
benchmark if both sides are either restricted to single- or multi-homing. In the mixed
case (one side single-homes, the other one multi-homes), the optimal platform locations are
determined by the relative profitability of both market sides. Our results indicate that
modeling mergers on two-sided markets with fixed locations is often inappropriate.